Cambodia Property Market Moves Into a More Disciplined Phase

Cambodia’s property market in mid-2026 is showing signs of stabilisation, but recovery remains uneven across different segments.

Headline prices are still correcting. The National Bank of Cambodia’s residential price index fell 3.67% year-on-year in January 2026, after a 3.8% decline in 2025. Phnom Penh recorded a sharper fall of 4.52%.

However, the market is not moving in one direction. The borey landed housing segment remains one of the most active areas, supported by a growing middle class and better financing access. At the same time, the high-end Phnom Penh condo market showed some recovery in late 2025, with average prices rising around 5% to above US$2,800 per square metre in Q4.

Cambodia also remains relatively affordable compared with other Southeast Asian capital-city markets, while rental yields are holding at a realistic 6% to 8% range.

Infrastructure and Logistics Support Long-Term Demand

The strongest growth drivers are now linked to infrastructure and real economic activity.

The launch of Techo International Airport in September 2025 has redirected Phnom Penh’s expansion southward, while areas connected to Ring Road 3 and the new airport have seen land values rise sharply over the past decade.

The industrial and logistics sector is also performing strongly, supported by regional supply-chain diversification. Meanwhile, the deferred 20% capital gains tax on immovable property until 1 January 2027 gives sellers a clear window to transact under the current tax regime.

Outlook

Cambodia’s property market is unlikely to see a broad-based surge in the near term. Instead, growth is expected to be gradual, disciplined and highly segmented.

Affordable and mid-range properties in infrastructure-linked areas should outperform, while oversupplied luxury condos may remain challenging. For patient investors, 2026 presents a value-oriented entry window, especially in landed housing and growth-corridor land.